The group's original lineup consisted of Jay King, Valerie Watson, Samuelle Prater, Denzil Foster, and Thomas McElroy. Foster and McElroy soon left to form their own production team and focus on working with other acts. Prater, who had performed lead vocals on "Lean on Me," eventually left as well to pursue a solo career, but reunited with the group in 2009.

The group's next albums—beginning with Listen to the Message—were laced with an evolving social consciousness. Notable recordings include, "You Ain't No Friend Of Mine" from Under A Nouveau Groove, a dancehall-influenced version of the Gospel classic, "Oh, Happy Day," from A New Beginning, "Let It Go" from Everything Is Black, and "What Kind Of Love" from The Collection Volume I. The group also recorded "Step by Step" for the Who's That Girl soundtrack.

Club Nouveau was nominated for a Grammy for Best R&B Performance in 1987. Their version of "Lean on Me" was their most celebrated hit resulting in a Grammy nomination for Song of the Year in addition to winning the Grammy for Best R&B Song that same year. "Lean on Me" was also nominated for two American Music Awards, nominated and won a Bammy Award, BRE Drummer award, Bay Area Star award and won two NARM (National Association of Recording Merchandisers) awards.